Shares of private lender IDBI Bank fell as much as 19% to Rs. 30.80 per share on the BSE following listing of 371.8 million equity shares allotted to qualified institutional buyers (QIBs) after its QIP or qualified institutional placement offer.
Through the QIP, the bank planned to aggregate Rs. 2000 crore ( base size- Rs. 1000 crore with a green shoe option of another Rs. 1000 crore). The lender's QIP opened on December 15 and ended on December 18. In its meeting held on Saturday (December 19, 2020), the committee approved the issuance and allotment of 371.8 million equity shares to the 44 QIBs at the issue price of Rs 38.60 per equity share, totalling to Rs 1435.18 crore.
The shares were allotted after offering a discount of 5% on the floor price of Rs. 40.63 per share.
The QIBs who were issued over 5% of shares in the QIP are PNB (20.9% subscription); Bank of Baroda (13.9 per cent); State Bank of India (13.9 per cent); Indian Bank (6.97 per cent); Canara Bank (6.97 per cent) and Societe Generale-ODI (5.66 per cent), said IDBI Bank.
Meanwhile, on Monday the lender said it has an option to draw a sum of Rs. 1500 crore from its promoter LIC as equity capital. LIC's shareholding in the bank post the QIO has fallen below 51 percent and thus the bank could take up to Rs. 1500 crore capital from LIC, said Rakesh Sharma, MD and CEO of the Bank.
Last at around 12:40 pm the stock of IDBI Bank traded weak by 14.70% on the NSE at Rs. 32.50 per share.